CVS Closing its Clinical Trials Arm After 2 Years
Two years after unveiling its clinical trial services in an attempt to reinforce its presence in the world of healthcare, CVS Health is shutting it down, Fierce Healthcare reported Monday. A CVS spokesperson told Fierce Healthcare it routinely reviews its portfolio to ensure its assets are "aligned with our long-term strategic priorities." The company will wind down the services in "a phased way" and expects a full exit by Dec. 31, 2024. Earlier this month, a CVS spokesperson told BioSpace that the clinical trial services were generating a profit.
Total Retail's Take: CVS has taken steps in the last few years to broaden its healthcare portfolio, inking multimillion dollar deals to acquire primary care companies like Oak Street Health and in-home healthcare companies like Signify Health. It was part of the company's strategy to become more of a full-service healthcare provider, extending its reach beyond its traditional pharmacy store locations.
CVS was also the first pharmacy to enter the clinical trials space. Other retailers and pharmacies followed: Walgreens announced its Health Research Initiative last summer, and Walmart launched the Walmart Healthcare Research Institute in October. Most recently, Kroger opened a clinical trial site network in January.
The American Hospital Association said Walgreens and CVS both launched clinical trial businesses with an eye toward reducing research costs and making it easier for underrepresented groups to participate in medical trials.